BAD FOR INVESTORS.
In a withering 24-page article released Sunday as part of its annual economic report, the Bank for International Settlements BIS said Bitcoin suffered from “a range of shortcomings” that would prevent cryptocurrencies from ever fulfilling the lofty expectations that prompted an explosion of interest — and investment — in the would-be asset class.
BAD FOR CONSUMERS
The BIS, an 88-year-old institution in Basel, Switzerland, that serves as a central bank for other central banks, said cryptocurrencies are too unstable, consume too much electricity, and are subject to too much manipulation and fraud to ever serve as bona fide mediums of exchange in the global economy. It cited the decentralized nature of cryptocurrencies — Bitcoin and its imitators are created, transacted, and accounted for on a distributed network of computers — as a fundamental flaw rather than a key strength.
BAD FOR ELECTRICITY SUPPLY
Bitcoin consumes 0.5% of the worlds electricity supply. Ina world where we are trying to reduce energy consumption and produce Clean Energy Cryptocurencies are BAD for the WORLD.
Hydro-Quebec will temporarily stop processing requests from cryptocurrency miners so that it can continue to fulfill its obligations to supply electricity to the entire province.
Canada’s biggest electric utility is facing “unprecedented” demand from blockchain companies that exceeds Hydro-Quebec’s short- and medium-term capacity, according to a statement Thursday. In the coming days, Hydro-Quebec will file an application to the province’s energy regulator proposing a selection process for blockchain industry projects.
GOOD FOR BANKS
The BIS did say that blockchain and its so-called distributed ledger technology did provide some benefits for the global financial system. The software can make sending cross-border payments more efficient, for example. And trade finance, the business of exports and imports that still relies on faxes and letters of credit, was indeed ripe for the improvements offered by Blockchain-related programs.